[Asia Economy Reporter Ji Yeon-jin] On the 18th, the stock market closed slightly lower. The KOSPI index was pulled down by institutions continuing net selling for five consecutive days, but individual investors defended the index by buying over 1 trillion won. The KOSDAQ engaged in a battle around the 980 level but widened its losses in the afternoon.
The KOSPI closed at 3,086.66, down 47.07 points (1.50%) from the previous day. The KOSPI opened lower, rose slightly in the early session, then quickly turned downward and fell below the psychological threshold of 3,100. Selling orders poured in until the market close, causing a 10-point drop in just over two minutes. Foreigners and institutions net sold 862.2 billion won and 614.4 billion won respectively, but individuals bought about 1.4719 trillion won, defending the index.
Among the top market cap stocks, Samsung Electronics briefly rose in the early session but closed down 1.322% as selling pressure from institutions and foreigners continued. Hyundai Motor fell 3.29%, recording the largest decline among the top 10 market cap stocks. SK Hynix also dropped 3.08%. LG Chem and Samsung SDI fell 1.88% and 1.99%, respectively. Naver fell 1.02%, breaking below 400,000 won. Samsung Biologics, which maintained an upward trend during the session, retreated 0.38% due to selling pressure just before the close.
The KOSDAQ index, which opened higher, closed at 967.45, down 12.32 points from the previous day. Individuals net bought about 208.7 billion won, while foreigners and institutions net sold 118.2 billion won and 70.5 billion won, respectively, pulling the index down.
Except for Seegene (5.88%) and Pearl Abyss (0.41%), most of the top market cap stocks declined. Celltrion Healthcare and Celltrion Pharm maintained gains in the morning but widened losses in the afternoon, closing down 2.85% and 2.81%, respectively. SK Materials and HL Biotech also recorded declines around 3%.
The rise in U.S. long-term interest rates added pressure and fueled selling by institutions and foreign investors, but individual investors’ sentiment remains strong, keeping the stock indices in a box range, analysts say.
Lee Jin-woo, head of investment strategy at Meritz Securities, said, "The direction of the domestic stock market is extending the box range due to the absence of major overall issues," adding, "Considering the recent decline in trading volume, it is clear that the market is taking a cautious pause." Lee Jae-man, head of investment strategy at Hana Financial Investment, said, "There is no momentum to move the market as there is no change in growth-led stocks," and added, "Usually, the market moves significantly at inflection points, but with low trading volume, it is sideways."
However, individual stocks related to Coupang’s U.S. stock market listing and Bitcoin’s bullish trend showed sharp rises. Danal recorded its second consecutive daily limit up after news of the introduction of Korea’s first Bitcoin payment system. Electronic payment companies SBI FinTech Solutions and Galaxia Money Tree also hit 52-week highs amid expectations of an expanded electronic payment market following Coupang’s listing.
SmartStudy, the producer of "Baby Shark," announced plans for a Nasdaq listing, and the stock of Samsung Publishing, the company’s second-largest shareholder, surged to the price limit. MP Hangang hit the daily limit amid rumors of a sale, and Jaan, which plans to acquire the company, also rose to the price limit. After the U.S. electric vehicle company Lucid Motors’ listing news, auto parts companies Central Motec and Saewon also hit the daily limit. Shinsegae rose 5.18% following improved earnings news.
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